The figure above represents the competitive market for slices of key lime pie. If the production is 80 slices per day, the cost of the 80th slice is
A) less than anyone is willing to pay for it.
B) more than anyone is willing to pay for it.
C) equal to what someone is willing to pay for it.
D) indeterminant.
E) equal to the deadweight loss from the 80th slice.
B
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Consider a nation in which most workers are unionized. If all the nation's unions band together and succeed in boosting wages established by long-term labor contracts, then
A) there is a leftward shift in just LRAS. B) there is a leftward shift in both LRAS and SRAS. C) there is a rightward shift in just SRAS. D) there is a rightward movement along the SRAS curve.
An increase in the supply of labor generates
A) increased unemployment. B) lower wages. C) an offsetting increase in the demand for labor. D) a decrease in the quantity demanded of labor.